The risks and rewards of buying crypto with credit cards

  • Cryptocurrencies are virtual currencies you can use to pay for goods and services, just as you might use dollars, euros or pesos.
  • If you’re wondering whether you can use a credit card to buy Bitcoin or other crypto, the answer is yes — but not easily. The hardest part will likely be finding a credit card issuer and a cryptocurrency exchange that allows such transactions.
  • Commission fees are the hardest crypto transaction fees to avoid, but using a credit card could potentially subject you to three fees instead of just a single commission charge.

A cryptocurrency exchange is likely to charge you a percentage of the transaction amount to swap dollars for Bitcoin or some other cryptocurrency. In addition to the fee the exchange charges for its service, it might charge an additional fee when you fund your account with a credit card.

In other words, using a credit card to buy Bitcoin, Ethereum, stablecoins or other cryptocurrencies is possible. In this article, we’ll explore how to buy crypto with credit cards, and its pros and cons.

How to buy crypto with a credit card?

The process for buying crypto with a credit card is fairly straightforward:

Find an exchange that allows credit card transactions. Your first step is signing up for a crypto exchange that allows you to use a credit card. Depending on which one you choose, you may have to share some personal information and verify your identity. (If the exchange allows credit card transactions, it’s almost certain you will.)

Double-check that your card issuer allows crypto purchases. Before you go any further, contact your credit card company to verify that it allows crypto purchases. Also, ask whether those transactions will be treated as regular purchases or cash advances.

Enter your payment method. Next, you’ll need to input your card information and save it as a preferred payment method.

Set up your transaction. Select which cryptocurrency you wish to purchase, in what currency and the amount you want to buy. Once you’ve confirmed all the details, go ahead and purchase.

Pay off your balance as soon as possible. It’s important to avoid letting interest rack up on your credit card balance, especially because you’ve already had to pay hefty fees for the transaction and you’re likely getting charged the higher cash advance annual percentage rate. Make it a priority to pay off your balance as soon as you have the funds.

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Pros and cons of buying crypto with a credit card

Buying cryptocurrency using a credit or debit card certainly has advantages, including speed and convenience. Yet, just like with any other investment or online purchase, there are always risks to consider.

It’s important to be aware of what can go wrong before you provide your credit card information on any platform, not just with crypto. Let’s go over the pros and cons when it comes to buying crypto with a credit card specifically.


Convenience: Many people don’t always have the funds available in any other form, such as in an account balance. Some cards have credit lines that you can use on the go without bank hassles and long wait times.

Speed: Sending money to an exchange from a bank account can take hours or even days for some. However, credit card purchases are quick and on the spot. This makes them a very attractive option for people who want to buy instantly.

Timely entrances: To take advantage of the price changes in a volatile market such as crypto, you must have a timely entrance. Buying at the right time can only be done with a swift purchase.

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High fees: Some credit card companies treat crypto purchases as cash advances, so these transactions are subject to cash advance fees. In addition, cash advance interest rates may apply. Other potential fees include foreign transaction fees or fees deducted by the exchange itself.

Fraud: Cryptocurrency vendors can become scammers, and cardholders risk giving away valuable credit card information in the transaction.

Credit score: If you’re going big and buying a large amount of crypto, this can use up all your available credit on your card. In effect, this can adversely affect your credit score in the long run.

While buying crypto with a credit card can be convenient and potentially rewarding, it’s important to be aware of the risks and take steps to protect yourself. By understanding the security measures in place, being aware of the fees and potential interest charges, and managing your credit responsibly, you can navigate the world of cryptocurrency with confidence.


Fiona Huang

Fiona Huang, an intern reporter at BTW media dedicated in Fintech. She graduated from University of Southampton. Send tips to

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